Down, But Not Completely OutThe Southeastern Glass Industry is Looking to Rebound,
but the Recovery has Been Slow By John Hollis

Evelyn Kim has had the kind of problems that business owners
everywhere hope to endure someday.

Unlike most glass companies in the southeast, the owner
of Green Glass of Georgia says her Atlanta-area business in Chamblee is
thriving these days even in an economy still slow to recover from the
crash. Many of her local competitors, however, weren’t as fortunate and
were forced to go out of business.

Kim attributes her good fortune to divine providence. “We’ve
been blessed, I guess,” she says. “We’ve got so many invitations [for
work offers] that we can’t respond to them all. It’s a good problem to
have. Somebody’s been watching over me.”

Kim’s enviable situation appears more the exception than
the norm, according to an informal USGlass magazine survey of various
glass companies throughout the southeast. Those in south Florida appear
to have been the hardest hit by the recession thanks to the region’s heavy
dependence on commercial construction.

Smaller, less-risky projects such as storefronts, curtainwalls
and heavy glass showers appear to be most in demand now as new home construction
remains low in a sluggish recovery. Unable to secure home loans as easily
as they once did, people are now looking to upgrade their existing residences
as opposed to buying. That demand has been instrumental in helping the
glass industry get back up on its feet.

But there’s still a long ways to go yet, according to recently
released employment figures.

Florida was among the 36 states to have added construction
jobs over the past 12 months, according to the Associated General Contractors
of America (AGCA). But despite the gains, those same numbers showed that
construction employment in both Florida and Arizona remains 49 percent
below their June 2006 record highs.

But there’s reason for optimism. Atlanta-area builders started
3,713 homes during the second quarter, according to report from Metrostudy,
a national housing information and consulting firm, representing a 77
percent jump over the same period last year.

And Atlanta’s not alone, although recovery in the construction
industry has come slower than to the rest of the economy. The strongest
recoveries have been in states such as Louisiana that are rich in oil
and gas activity, says Ken Simonson, the AGCA’s chief economist, while
the Sunbelt states continue to struggle as a whole.

“It’s coming back,” says Michael Backer, the owner of Miami-based
Action Glass Inc., “but it’s never going to be what it was. The banks
got a serious reality check. I’d imagine most people down here would be
happy if the new construction got back to just one-third of what it used
to be. But I don’t really think it’s going to do that.”

Rough Times in South FloridaBacker’s skepticism is understandable, given the dire economic
climate that befell South Florida following the crash of the real estate
market a few years ago. At the height of the region’s boom in the early
2000s, it wasn’t uncommon to see new malls, condos, apartments and other
commercial developments popping up by the day, Backer says.

The real estate bust that began in 2007 was devastating
to the South Florida glass industry as virtually all new construction
suddenly came to a screeching halt, leaving suppliers and fabricators
alike stuck with an abundance of both idle equipment and employees. It
was hard to go anywhere in Miami without seeing an empty condo or housing
developments serving as testament to the good days many believed would
never end.

Since then, small businesses have been the ones most impacted
by the rising costs of materials, energy and health care, glass company
managers agree. Fearing customer backlash, they’ve often been reluctant
to pass expenses on, instead often choosing to compensate by restraining
salaries and asking their employees to be more efficient. The uncertain
national political climate only further fueled the doubt about the economy’s
recovery.

Action Glass was one of the few south Florida glass companies
that wisely stayed true to relatively small jobs of doors, windows and
shower doors even during the good times, meaning that it was easier for
the company to withstand the tough times to follow. Unlike many of its
local contemporaries, the company wasn’t forced to sell any equipment
or lay off any workers during the recession.

But Backer, who has been in business since October 1978,
is heartened by the “significant increase” he’s seen as of late in new
construction in the Miami area.

“It’s back,” he says, “but things are never going to be
like they were.”

Good Fortune in the ATLKim first bought Green Glass of Georgia in 2005, oblivious
like most people to the economic mayhem just around the corner. The business
had thrived under the previous owner, leaving Kim and her family to be
little worried that they didn’t even know all that much about the glass
business as a whole upon taking over.

Things were tough initially, but Kim and her family proved
themselves quick learners and soon had things rolling. The metro Atlanta
area wasn’t spared from the recession, although its effects were later
in being felt there, Kim says. It wasn’t long before she started seeing
a number of competitors shutter their doors as demand for glass dipped
dramatically.

Recognizing the changing market landscape, Green Glass of
Georgia made the decision to pass on the kind of large shopping mall projects
it had done in the past. Lengthy jobs such as those involving malls were
deemed too risky at the time because of the vast amount of company time
and resources the work tied up. And then making sure they got paid for
their work in a reasonable time period was another risk, given the dire
economic times so many businesses were enduring at the time.

Instead, Kim made the decision to focus mostly on interior
work with heavy glass jobs, citing the added stability still in that part
of the business. The call proved fortuitous as Green Glass continues to
thrive today.

But Kim isn’t so sure what tomorrow holds.

“I have no idea what the future is,” she says.

Making it Work in South CarolinaThe good ole’ days were just that, says Barbara Streeter, the
co-owner of Conway Glass in Conway, S.C. Demand in the glass industry
in South Carolina was rising at about 12 percent per year, fueled in large
part by the tremendous growth in condominiums, hotels and vacation homes
in and around the scenic Myrtle Beach area.

But everything changed when the economy crashed, and Conway
Glass was among the many to feel the pinch as company sales plummeted.
The small, privately-owned company was forced to begin laying off workers
in 2008, trimming down from 13 employees to its current four.

To reposition their company and remain viable in the new
market, both Streeter and her husband co-owner Ed Streeter, also made
the decision to stay small and remain content with more stained glass
windows and shower door jobs.

Upscale shower doors in particular have been in high demand
in the area, Barbara Streeter says.

“We noticed it about two years ago,” she says. “People weren’t
building new homes. They were staying in their same homes, but they wanted
to spice things up and make it feel like a vacation home.”

Barbara Streeter says there’s no mistaking the uptick in
business as of late, so much so that she expects the company to begin
hiring again sometime in the near future.

“I think it’s going to come back,” she says of the economy,
“but I don’t think it’s going to come back quickly. There are definitely
opportunities out there for people who are dedicated and love the glass
industry.”